UK Launches Pilot Of Making Tax Digital For VAT
Jason Gorringe, Tax-News.com, London
19 October, 2018
The UK Government on October 17 launched a pilot of its Making Tax Digital project. More than half a million businesses registered for VAT will be invited to sign up for the regime, prior to its full introduction from April 2019.
Under MTD, from April 1, 2019, businesses with a turnover above the VAT threshold (currently GBP85,000, or about USD112,250) will have to: keep their records digitally (for VAT purposes only), and provide their VAT return information to HM Revenue and Customs (HMRC) through MTD-compatible software.
HMRC said businesses whose affairs are up to date and straightforward will be offered the opportunity to engage in the pilot, with most other business types being accepted into the pilot over the coming months.
HMRC is to work with those businesses with particularly complex affairs during the duration of the pilot to support them to prepare themselves for Making Tax Digital for VAT.
Launching the pilot, Mel Stride, the UK's Financial Secretary to the Treasury, said: "HMRC is transforming the tax administration so that it's more effective, more efficient, and easier for taxpayers. Today's announcement means that around half a million businesses will be able to join Making Tax Digital and start filing their VAT returns online, making it easier to get their tax right first time."
"More and more businesses use digital tools every day to help them operate – tax shouldn't be different. This is a major step towards bringing VAT into the 21st century."
TAGS: compliance | VAT tax authority guidance | tax | business | value added tax (VAT) | tax compliance | United Kingdom | tax authority | HM Revenue and Customs (HMRC) | HM Revenue and Customs (HMRC) | VAT compliance matters | Tax |